v3.26.1
STOCK-BASED COMPENSATION
6 Months Ended
May 29, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Restricted Stock Units
Restricted stock unit activity for the six months ended May 29, 2026 was as follows:
Number of
Shares
(in millions)
Weighted Average
Grant Date
Fair Value
Aggregate
Intrinsic Value
(in millions)
Beginning outstanding balance7.9 $436.52 
Awarded7.0 $293.34 
Released(2.0)$421.11 
Forfeited(0.5)$406.22 
Increase due to acquisition0.4 $215.23 
Ending outstanding balance12.8 $355.44 $3,312 
Expected to vest11.7 $356.94 $3,019 
The total fair value of restricted stock units vested during the six months ended May 29, 2026 was $541 million.
Performance Shares 
In the first quarter of fiscal 2026, the Executive Compensation Committee of our Board of Directors (the “ECC”) approved the 2026 Performance Share Program, the terms of which are similar to the 2025 Performance Share Program that is still outstanding. For information regarding our outstanding Performance Share Programs, including the terms, see “Note 12. Stock-Based Compensation” of our Annual Report on Form 10-K for the fiscal year ended November 28, 2025.
As of May 29, 2026, performance shares awarded under our 2026, 2025 and 2024 Performance Share Programs remained outstanding and unvested.
Performance share activity for the six months ended May 29, 2026 was as follows:
Number of
Shares
(in millions)
Weighted Average
Grant Date
Fair Value
Aggregate
Intrinsic Value
(in millions)
Beginning outstanding balance0.6 $501.16 
Awarded0.3 $339.26 
Released(0.2)$472.18 
Forfeited(0.1)$477.37 
Ending outstanding balance0.6 $430.11 $155 
Expected to vest0.5 $434.55 $140 
Under our Performance Share Programs, participants generally have the ability to receive up to 200% of the target number of shares originally granted. Shares released during the six months ended May 29, 2026 resulted from overall payout at 83% of target for the 2023 Performance Share Program, as certified by the ECC in the first quarter of fiscal 2026.
The total fair value of performance shares vested during the six months ended May 29, 2026 was $62 million.
Employee Stock Purchase Plan Shares
Employees purchased 0.3 million shares at an average price of $297.49 and 0.3 million shares at an average price of $305.04 for the six months ended May 29, 2026 and May 30, 2025, respectively. The intrinsic value of shares purchased during the six months ended May 29, 2026 and May 30, 2025 was $15 million and $44 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of purchase and the purchase price of the shares.
Compensation Costs
As of May 29, 2026, there was $4.21 billion of unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock-based awards and purchase rights which will be recognized over a weighted average period of 2.55 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures.
Total stock-based compensation costs included in our condensed consolidated statements of income for the three and six months ended May 29, 2026 and May 30, 2025 were as follows:
 Three MonthsSix Months
(in millions)2026202520262025
Cost of revenue$35 $31 $66 $61 
Research and development277 247 548 494 
Sales and marketing150 141 292 278 
General and administrative74 62 139 123 
Total$536 $481 $1,045 $956